SOL, the native crypto asset of the Solana blockchain network, reached a record high value on Monday after the parent organization’s DeFi product launch and the $70 million DEX funding. The value of SOL witnessed a significant jump, sending the asset price to an unprecedented $72.63 (at the time of writing this). It is also the first time the asset has crossed the $70 mark. Of course, crypto investors are excited to see the bullish performance of Solana.
Considering that the token had a value of only $2 in January 2021, the transition to $70 is no less than impressive. However, the recent DeFi product launch is not the only reason why Solana prices are soaring.
Regular Upgrades and DeFi Launches
Compared to other blockchains, Solana has been receiving more updates and improvements in the past weeks. For instance, the blockchain network launched Wormhole, a brand-new protocol that enables communication between Solana and other DeFi projects. Therefore, SOL will be a part of the cross-blockchain tech and associated services in the future. Through Wormhole, Solana can integrate with platforms like Ethereum, Binance Smart Chain, and Terra. In addition, the platform has also enhanced its support for NFTs.
Better Speed and Enhanced Security
The soaring of SOL comes amid investors looking beyond obvious options like Bitcoin and ETH. It must also be noted that the prices of the SOL token have risen at the same time when the bullish move by BTC and ETH have subsided. Furthermore, the Solana platform can process up to 50,000 transactions a second; so, the SOL token can quickly become a more practical alternative to existing cryptocurrency projects.
The blockchain network also uses a unique consensus mechanism called Proof of History. Crypto experts have praised the system for its increased speed and security.
Crowdfunding for Mango Markets
As we mentioned before, Solana has received a $70 million crowdfund for Mango Markets, a decentralized exchange that uses the blockchain. Mango Markets managed to raise the amount via token sale, which attracted investors from different sectors. The platform is a decentralized exchange where users can access spot markets, swaps, etc. Compared to platforms like Ethereum, the gas fees on Mango Market are very low. Therefore, it is considered one of the better alternatives in the market. We have to keep in mind that token sales raise around $1 to $15 million on average.
The Future of SOL
According to some predictions, the Solano token is close to being one of the most popular cryptocurrencies in terms of market capitalization right now. However, SOL is likely to face some challenges on the way, similar to other tokens as BTC and Ether did. For instance, experts indicate that Solano could be subjected to overvaluation risks, which ultimately slowed down the value growth of Bitcoin and Ether. Nevertheless, the SOL token and other DeFi projects from Solano seem to be suitable options for worthwhile investment at the current point.
It is also worth noting that many decentralized apps seem to be using the Solana platform due to its increased speed and security. As this trend continues, it remains to be seen whether the SOL token’s popularity and value retain their favorable rate.
